Which one of the following time series is most likely to be stationary? Select one: Consumer...

Which one of the following time series is most likely to be stationary?

Select one:

Consumer price index
Financial asset returns
Life expectancy
Nominal gross domestic product

Provide a detailed explanation on why the selected option is correct.

Expert Solution

Life Expectancy

Consumer Price Index is a measure of inflation over a period of time. The price level in the economy keeps on changing time to time. These changes vary in terms of their size or magnitude. So, the data for CPI may suffer from non-stationarity problem.

Similar, to CPI, Financial asset returns and Nominal Gross Domestic Product may suffer from many variations in asset prices and the values of goods and services. Asset returns depend upon the behaviour of stock market which is highly unpredictable. Hence, they may also suffer from this problem

We may expect Life Expectancy data to be most stationarity as the data is not changed frequently. Also, life expectancy includes considerations of many averages which reduce the non-stationarity element in the data.

Rahul Sunny answered 2 years ago

Choose the statement which best describes the “Time Series Momentum”. Select one: a. In Time Series...

Choose the statement which best describes the “Time Series Momentum”. Select one: a. In Time Series Momentum, we form a portfolio of all assets in our universe. First, we use the volatility-scaled returns and then invest appropriately b. Time Series Momentum examines each asset individually. If its recent performance has been bad, then we go short, otherwise we go long. Finally, our portfolio will include all assets c. Time Series Momentum is a special case of Cross-Sectional Momentum where we...

plz explain the following two concept Time series Stationary and nonstationary time series

Describe the following terms a) stationary time series b) seasonal time series c) box test (...

Describe the following terms a) stationary time series b) seasonal time series c) box test ( clearly define your notation and the null and alternative hypotheses)

What does it mean for a time series to be stationary?

One way of making a series stationary is?

Which caregiver is most likely to experience compassion fatigue Select one: a. A son who is...

Which caregiver is most likely to experience compassion fatigue Select one: a. A son who is highly engaged in helping his father manage progressive symptoms of Multiple Sclerosis. The son is in good health and spends about 20 hours with his father weekly. b. Unpaid children who rotate caregiving responsibilities equitably for their mother who needs assistance with daily meal preparation due to diabetes, arthritis, and glaucoma. c. A spouse who provides ongoing care for his wife who suffers from...

Which of the following workers is most likely to lose their job during a recession? Select...

Which of the following workers is most likely to lose their job during a recession? Select one: a. A teacher b. A bank teller c. A car assembly worker d. A nurse Intentional changes in government expenditures and taxes to influence GDP: Select one: a. are enacted by the Treasury b. are intended to ease inflatory pressures c. are discretionary fiscal policy measures d. are automatic stabilisers The intended goal of expansionary fiscal policy is: Select one: a. an increase...

Which of the following is least likely to be an income inferior good? Select one:

Which of the following is least likely to be an income inferior good? Select one: a. Beans. b. Education. c. Corn. d. Rice.

Which revenue recognition method would most likely be used by a retailer? Select one: a. upon...

Which revenue recognition method would most likely be used by a retailer? Select one: a. upon cash collection b. upon delivery c. during production d. point of sale Which of the following is a disadvantage of issuing bonds instead of common shares? Select one: a. The principal of the debt must be repaid at maturity. b. Earnings per share will increase. c. Shareholder control is not affected. d. Income to common shareholders may increase. When bonds are issued at a...

Which of the following are true of primary hypertension? Select all that apply 1.most likely to...

Which of the following are true of primary hypertension? Select all that apply 1.most likely to cause enlargement of the right ventricle 2.may contribute to the development or worsening of an aneurysm 3.is often identified early due to end-organ dysfunction 4.individual's at risk are often identified during routine screening 5.may be diagnosed using multiple measures during a single visit

Question